January 10, 2014, Volume 3, Issue 8

01/10/2014

Update:  On January 8, 2014, the Commission issued an Entry on Rehearing denying Duke’s application for rehearing which requested that the Commission reconsider the 10-year time frame for the recovery of costs incurred for the environmental remediation of former manufactured gas plant (MGP) sites.  The Commission determined that clarification was unnecessary because the Commission’s Order clearly provided that Duke could seek an extension of the 10-year period in the future if exigent circumstances outside of the company’s control arose.

The Commission also denied the joint application for rehearing filed by the Ohio Consumers’ Counsel, Kroger, OMA, and the Ohio Partners for Affordable Energy.  The Commission confirmed its finding that the collection of MGP costs is separate and unique from the determination of “used and useful” on the date certain that is utilized for defining what will be included in base rates.  The Commission also upheld its finding that remediation constitutes a cost of providing utility service and is a necessary cost of doing business.  The Commission further found that CERCLA obligates Duke to investigate and remediate the MGP sites and that such obligations are not voluntary.  The proceedings at the Commission level now appear to be complete.  The parties may now appeal to the Supreme Court of Ohio.

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